Groceries, energy prices and fuel are on the rise, to the point where we cannot fail to notice. With YouGov reporting that 4 in 10 Britons expect their finances to decline over the next year, and with a warnings of further increases on the cards come Autumn, should we all use the summer window to start paying close attention to our spending habits - and start making more sustainable choices at home in a bid to save?
Mortgage matters
For most of us, the largest monthly expense is our mortgage payment. Right now, everyone with a variable rate mortgage is worried about it becoming a significant financial burden when - not if- interest rates rise. Fixing a longer term mortgage is the safest way to gain comfort, knowing the monthly sum will remain the same. But changing terms mid-deal can also mean you are up against significant financial penalties. Discussing your mortgage options with your mortgage broker if you are on a variable rate, will give you more insight into your options.
Today’s rates are higher than they were in the low-rate years of 2020 and 2021 - yet still aren’t that high if you zoom out prior to that timeframe. Rates, for example, were well above 4% in 2018-2019 and before 2008, a ‘good’ mortgage rate was considered around 5%. What this means, from a long term view, is current mortgage interest rates are still good despite breaking through the psychological barrier of 4%. If your current rate is higher than today’s rates, then remortgaging could be a good option. Discussing your mortgage options with your mortgage broker, will give you more insight into your options.
Watch your waste
Every single product we buy has its own carbon footprint. Consequently, it’s vital we buy and waste less to reduce the amount of landfill or leaks into nature. Reuse and recycle your plastics, and to avoid excess methane produced by food rotting in landfill - buy food that you’ll consume and freeze what you can’t. Learn to love your leftovers. Be inventive with your cooking and you’ll not only be helping your pocket but the planet will benefit, too.
Become flexitarian
UN scientists have advised that we should reduce the amount of meat we eat to avoid deforestation - because trees are cleared to make space for livestock and grow their feed - and methane emissions. Switching to more plant-based meals (including pocket friendly pulses) even just a few times a week, significantly reduces your carbon footprint and can help keep your grocery bill digestible.
Go for green energy
Electricity generated by burning fossil fuels such as coal and gas directly causes global warming and pollution, so switch to a different tariff or supplier which uses renewable energy such as wind or solar power. Making simple changes at home including lowering your thermostat and washing clothes at 30 degrees will also make a difference and help save you money.
Save water
Using less water cuts our carbon footprint. If you have a gas boiler, 46% of the emissions related to household water come from it, and showers are the main culprit, according to the Energy Saving Trust. If every household in the UK took one minute off their daily shower, it would save £215 million in energy bills a year nationwide.
Curb car journeys
Transport is the largest source of CO2 in the UK, accounting for 27% of our overall footprint, with private cars being the biggest contributor, according to We Are Possible. Although 97% of car journeys are still powered by fossil fuels, the government has pledged that no new cars will run off petrol or diesel by 2030. An increase in electric vehicles will help, but these cars lower emissions rather than removing them entirely. So how can we help to have fewer cars on the road? Car pooling or subscription car sharing services can help, along with cycling or walking where possible in major cities, is more practical than in more rural areas. Thinking about the real need to travel will help us cut the number of car journeys we make and shorter commutes like the school run, more inventive.
Greener cooking
After water-based appliances and refrigeration, cooking is the next big culprit in terms of its energy footprint. Using residual heat to complete the cooking process is a nifty way of reducing gas and electric usage, and it works a treat! Using the preheating oven stage of cooking by reviving dry bread, and preventing yourself from opening the door to peek midway through, will also help your cooking efficiency.
Every cloud
There’s nothing like an energy price hike to make us think about being more sustainable wherever we happen to live - which can only be a good thing. It’s all too easy to do the minimum and step away from the level of change we need to make at home to see a real difference. Still, lockdown gave us more time to think about what we wanted to spend our money on although for now - our cash might not have the power it once did.